LONDON—Oil dropped about $2 a barrel on Monday as a flare-up in COVID-19 cases in Beijing dented hopes of a Chinese demand rebound, while worries about more interest rate hikes to control rampant inflation added further pressure.
Beijing’s most populous district Chaoyang announced three rounds of mass testing to quell a COVID-19 outbreak that emerged last week.
Brent crude was down $1.86, or 1.5 percent, to $120.15 at 0907 GMT, while U.S. West Texas Intermediate crude was down $2.15, or 1.8 percent, at $118.52.
Concern about further rate hikes, heightened by Friday’s U.S. inflation data showing the U.S. consumer price index rose 8.6 percent last month, also pushed oil lower and weighed across financial markets….